Kraken operator Payward seeks OCC national trust charter to scale U.S. institutional custody

CoinDesk reports that Payward, the parent company of crypto exchange Kraken, has applied for a national trust charter from the U.S. Office of the Comptroller of the Currency (OCC), aiming to expand institutional cryptocurrency custody across the country. The proposed entity, Payward National Trust Company (PNTC), would not take deposits or make loans like a traditional bank. Its mandate would center on institutional digital-asset custody, one of the most competitive segments in crypto as large asset managers and trading firms demand regulated infrastructure. Kraken says the OCC trust charter would sit alongside Kraken Financial Bank, which already holds a Wyoming SPDI license. A federal trust charter would allow Kraken to serve institutional clients nationwide under a single regulatory framework rather than navigating state-by-state requirements—an important factor for funds, pension plans, and hedge funds that are required to use qualified custodians. Payward co-CEO Arjun Seth called the effort a "complementary pillar" of the company's banking buildout. The push follows a milestone in March, when Kraken Financial became the first crypto bank to obtain a Federal Reserve "master account," enabling it to settle U.S. dollar payments directly through Fedwire without intermediaries. Combined with Fed access, the SPDI license, and a potential OCC charter, Kraken is positioning itself as one of the most tightly integrated crypto companies within U.S. financial plumbing. The move comes as the industry races for federal licenses. Coinbase received conditional approval for a similar license in April, while Ripple, Circle, BitGo, and Fidelity Digital Assets are also ramping up banking-related expansion. Market participants tie the shift to expectations that by 2026 the U.S. regulatory stance will be more constructive, and to OCC leadership changes that increasingly frame digital assets as future financial infrastructure rather than purely speculative markets. Payward is also widening its business beyond exchange trading. It recently agreed to acquire Reap Technologies for about $600 million to advance stablecoin payments and international card infrastructure. Earlier, it bought Bitnomial for about $550 million to bolster regulated derivatives and clearing capabilities. The broader takeaway for markets: after years of friction with regulators, the largest crypto firms are no longer trying to operate outside the banking system—they are moving to become part of it.